GE Capital has agreed to buy life insurer MetLife's US retail deposit business, giving it around $7.5 billion in deposits and a new online banking platform. Financial terms were not disclosed.
GE has been seeking to broaden its funding base since the financial crisis and the move into retail deposits is designed to reduce its reliance on commercial paper and bond sales.
Dan Henson, president and CEO, GE Capital - Americas, says: "This acquisition fits with our plans to launch a US deposit platform. It accelerates our timing, helps us build a stronger and more cost efficient funding base, and allows us to better serve our middle market commercial customers."
The deal is slated to for completion by the middle of the year, subject to regulatory approval, freeing up MetLife, which has been looking to sell off the business for several months as a way to escape Federal Reserve oversight.